Nasdaq enters correction as AI and chip stocks plunge after Democratic midterm gains
NBC News reports the Nasdaq Composite entered correction territory Thursday, down about 4.5% midday, with the Dow off more than 1,250 points and Nvidia about 7% as investors priced slower data-centre buildout risk.
Why it matters
Thursday's tape turned midterm data-centre politics into a market event: the Nasdaq's correction print and Nvidia's roughly 7% drop show investors pricing a slower US buildout if Democratic majorities tighten permitting. That sits beside OpenAI's same-day community-compact pledges and earlier CoreWeave-versus-hyperscaler splits. The question for the next sessions is whether this is a one-day political repricing or the start of a longer capex pause across chip and power suppliers.
Key facts
- Nasdaq Composite entered correction Thursday 5 Nov 2026
- Index down about 4.5% midday per NBC News
- Dow Jones off more than 1,250 points
- Nvidia fell about 7%, largest one-day drop since April 2025
- Selloff tied to Democratic midterm gains and data-centre risk
- Same day as OpenAI National Community Compact pledges